A new Microsoft Store revenue share is coming

Microsoft Store continues to evolve to be the best destination for Windows 10 users to discover and download Microsoft-verified applications that deliver predictable performance. Microsoft Store is also the best destination on Windows 10 for developers to reach new audiences and gain new customers. We’ll focus on the infrastructure, so you can focus on building the best app and growing your business as a developer. To that end, we are excited about the announcement Joe Belfiorewill be making at Build 2018 regarding a new Microsoft Store fee structure coming later this year.

A better revenue share for developers

Starting later this year, consumer applications (not including games) sold in Microsoft Store will deliver to developers 95% of the revenue earned from the purchase of your application or any in-app products in your application, when a customer uses a deep link to get to and purchase your application. When Microsoft delivers you a customer through any other method, such as in a collection on Microsoft Store or any other owned Microsoft properties, and purchases your application, you will receive 85% of the revenue earned from the purchase of your application or any in-app products in your application

The new fee structure is applicable to purchases made on Windows 10 PCs, Windows Mixed Reality, Windows Phone and Surface Hub devices and excludes purchases on Xbox consoles.

A new way for developers to monetize

These changes to our current Microsoft Store fee represent a new way for you to monetize on the Windows platform. With the new fee structure, Microsoft is only accessing an additional fee when we contribute to you acquiring a new user. These changes enable us to create a world where developers are rewarded for connecting customers with experiences they love in a secure, reliable way.

The fee structure will be defined in detail in an upcoming revision to the App Developer Agreement later this year. Visit this page for current details and to sign up for a notification when the new fee structure goes into effect. Also, please refer to the FAQ below.

What applications will the new fee structure apply to?

Any consumer non-gaming app published to the Microsoft Store for PC, Windows Mixed Reality, Windows Phone or Surface Hub.

When does the new fee structure go into effect?

Later this year (2018). We’ll prompt you to accept a new version of the App Developer Agreement that outlines the Microsoft Store fee structure in detail. The new fee structure will apply to purchases made after the date listed in the App Developer Agreement.

Will the new fee structure apply to games or game subscriptions?

No. The new fee structure only applies to consumer apps on PC, Windows Mixed Reality, Windows Phone or Surface Hub. Apps categorized as Games in the Store will not be eligible for the new fee structure, even if they are available on those device types.

How does the Microsoft Store fee apply to subscriptions and other add-ons (in-app purchases)?

The new fee structure will apply to non-game, consumer app subscriptions and add-ons (in-app purchases). The fee applied to these purchases will be determined by how the user originally acquired the application. The new default 5% Store fee will apply for all transactions using Microsoft’s commerce platform and, if your customer uses a deep link to acquire your application, that’s all you’ll owe. The extra 10% customer acquisition cost will apply when Microsoft delivers you the customer through any other method, such as via a Store collection or a Microsoft Store spotlight.

All future subscription purchases and add-on (in-app) purchases for a user will be assessed the same fee percentage that was assessed when the user first acquired the application.

Will the new fee structure apply to purchases made via Microsoft Store for Business? Microsoft Store for Education?

No. The new fee only applies to individual purchases of consumer apps on PC, Windows Mixed Reality, Windows Phone or Surface Hub. If you allow your app to be offered via organizational licensing in Microsoft Store for Business and/or Microsoft Store for Education, the current Store fee will continue to apply to those purchases.

What about applications that are not games, but are available to customers on Xbox?

Any purchases made by customers on Xbox consoles, whether the product is an app or a game, will use the current fee structure.

What about applications that are available on both Microsoft Store for Windows 10 PC and Microsoft Store for Xbox One?

The new fee structure will apply to non-game consumer app acquisitions by individuals on Microsoft Store for Windows 10 PC (and the other device families mentioned above). The current fee structure will apply to acquisitions on Microsoft Store for Xbox One devices.

What will the fee structure be for applications that are available to earlier OS versions (Windows 8.x and/or Windows Phone 8.x)?

The new fee structure will apply to apps available on Microsoft Store on earlier OS versions (Windows 8.x and/or Windows Phone 8.x).

Fantastic!
Hope a competent executive like Scott Gu can take charge of the store at least temporarily to straighten out its numerous bugs and absurdities so that the store will be at the save level of rivals such as Google Play. UWP app development has the best targeting OS, the best IDE, the best API, now the best fee structure, but unfortunately, the worst store that has been the major drag of UWP app growth.